Real Estate Asset Management
At PWREAM, we focus on the real estate belonging to private high net worth individuals, estates, or smaller non-profits. Our scope is centered around individual commercial or multifamily assets that are valued at between $2,000,000 and $20,000,000 each. These categories of real estate generally have the most rapid percentage upside, as they often have a number of variables, which if managed correctly, can lead to large appreciation. Conversely, if not managed properly, they are likely to lose sudden value and become illiquid. Fortunately, capable management of your assets can place you results in the former category of impressive long term gains while still having the comfort of a “hard asset”.
So what is asset management? Asset management is the oversight of the property on a continuous basis to insure that there exist the proper balance of reinvestment and repairs to ensure maximum current cash flow and long term appreciation.
Asset management is separate from property management. Property management helps you manage your property regarding the day-to-day chores of collecting rent, paying expenses, and ensuring emergency repairs get taken care of on a timely basis for the benefit of the tenant. Property management is a tedious, but necessary service to ensure the operational aspect of the building is getting done.
But what about management of the building itself? Or the parking garage? Or the long term future of the building systems? Are they sustainable? Who is looking out for the long term future of the asset and its value in the market? Every property has a life cycle and it is important to be aware of both external and onsite opportunities and challenges. Could it be that the building has run its course as its present use? Maybe a repositioning is appropriate, or maybe it is time to take the property and/or its façade to a new
and higher level; or just the systems; or maybe both. Or maybe the property is at its apex and it’s time to sell. And maybe it’s time for recapitalization or refinancing. These are tasks normally beyond the scope of property managers who primary focus is day-to-day and the annual budget process.
At PWREAM we work with property managers to implement your vision for your asset to position it to achieve your long term goals. We focus on activities that will add value to or protect the property. By utilizing our skills as asset managers utilizing data and information from the property managers, we will recommend and implement a long term strategy that should maximize the potential of your property. Whether your goal is long term appreciation or maximizing current cash flow or a balance of both, we will give you the advice to help your assets meet your needs.